Canyon Resources expands infrastructure play with CAMRAIL investment

Minim Martap Bauxite Project-owned Canyon Resources Limited has announced that the Board of CAMRAIL SA has approved Total Energies Marketing Cameroun SA and Société d’Exploitation des Bois du Cameroun, to enter into two share sale agreements with its wholly owned subsidiary, Camalco Cameroon SA. Upon completing the transactions, Camalco will acquire a strategic 9.1 per cent stake in CAMRAIL and secure a position on its Board.

Camalco has successfully acquired a 3.8 per cent equity stake in Camrail from SEBC for an upfront cash payment of XAF 575,700,000 (approximately A$1.4 million). This unconditional acquisition was completed on February 28, 2025. Additionally, Camalco is set to acquire a further 5.3 per cent equity stake in Camrail from Total Cameroon for XAF 812,850,000 (approximately A$2.0 million), pending final approval from Total Cameroon's Apex Committee. This internal approval is expected to be finalized by the end of March 2025. The total investment of approximately A$3.4 million for the 9.1 per cent stake in Camrail will be funded from the Company's existing cash reserves.

Canyon prioritises the development and accessibility of a robust transport network within the region, particularly within the mine and from the mine to the port. The execution of key agreements and strategic investment in Camrail, which operates Cameroon's rail network, has further strengthened the Company's position by reducing risks and optimising the logistics solution for its world-class flagship, the Minim Martap Bauxite Project.

Jean-Sebastien Boutet, Canyon's Chief Executive Officer, commented, "This investment in Camrail is a major milestone for Canyon as we continue to work on establishing an optimal logistics plan for the Minim Martap Project."

"Minim Martap is a standout, tier-one bauxite project, which Canyon believes has all the required characteristics to become a long-term, low-cost operation, supplying a high-quality product into a growing and constrained market. To unlock the significant value potential of Minim Martap, Canyon has been focused on progressing and completing key discussions with the Ministry of Mines, the Ministry of Transport, the Port Authority of Douala, Camrail and other relevant authorities to sign agreements for rail and port and secure logistics support.”

"We welcome the Board of Camrail's approval of the 9.1 per cent stake sale previously held by Total Energy and SEBC, to Camalco and look forward to working alongside the current shareholders in Camrail, State of Cameroon and Africa Global Logistics.”

"This acquisition is a significant step forward in gaining access to rail infrastructure and delivering on our logistics objectives in the first half of 2025, and I would like to take the time to recognise the ongoing hard efforts of the Canyon team as we rapidly develop Minim Martap towards production."

The Minim Martap deposit is one of the world's richest bauxite reserves. It boasts an Ore Reserve of 109 million tonnes with an impressive grade of 51.1 per cent Al₂O₃ and just 2.0 per cent SiO₂. Additionally, it holds a JORC Mineral Resource Estimate of 1,027 million tonnes at 45.3 per cent Al₂O₃.

Global bauxite market size

The global metallurgical bauxite for aluminium market is expected to grow significantly between 2023-2030. According to estimates, the market was worth USD $15.5 billion in 2023. However, by 2030, a substantial increase is anticipated, with the market size projected to reach USD $19.6 billion at a CAGR of 2.41 per cent.

                Global metallurgical bauxite for aluminium market (in $USD billion)

This projected growth can be attributed to several factors, including rising global demand for aluminium, particularly in sectors like transportation, construction, energy transition (green energy), and packaging.

In 2025, the worldwide bauxite production is projected to grow significantly, with anticipated production reaching approximately 450 million tonnes. This growth represents a compound annual growth rate (CAGR) of 2.85 per cent from 2020 to 2025. The growing demand for aluminium products primarily fuels the rise in production. Aluminium, a highly versatile and low-density material, is utilised across various sectors, including automotive, aerospace, construction, packaging, and consumer products. As these sectors continue to grow, an increase in demand for aluminium and its primary raw material, bauxite, is expected.

Image credit: Financial Afrik